Bill Text: CA SB340 | 2011-2012 | Regular Session | Amended

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Remote caller bingo.

Spectrum: Partisan Bill (Democrat 2-0)

Status: (Engrossed - Dead) 2011-08-25 - Set, first hearing. Referred to APPR. suspense file. Held in committee and under submission. [SB340 Detail]

Download: California-2011-SB340-Amended.html

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BILL NUMBER: SB 340	AMENDED
	BILL TEXT

	AMENDED IN SENATE  APRIL 14, 2011

INTRODUCED BY   Senator Wolk
    (   Coauthor:  
Assembly Member   Chesbro   )


                        FEBRUARY 15, 2011

    An act to amend Section 25608 of the Business and
Professions Code, relating to alcoholic beverages.   An
act to amend Section 326.3 of the Penal Code, relating to bingo.




	LEGISLATIVE COUNSEL'S DIGEST


   SB 340, as amended, Wolk.  Alcoholic beverages: places of
consumption.  Remote caller bingo.  
   The California Constitution allows the Legislature, by statute, to
authorize cities and counties to provide for bingo games for
charitable purposes. Existing law authorizes cities and counties to
permit eligible nonprofit organizations to conduct bingo games and
remote caller bingo games, as defined, for charitable purposes
pursuant to an ordinance that allows those games to be conducted in
accordance with specified requirements. Existing law sets forth a
model ordinance for a city, county, or city and county to authorize
remote caller bingo, and prohibits an organization from conducting
remote caller bingo more than 2 days per week. Existing law prohibits
more than 750 players from participating in a remote caller bingo
game in a single location. Existing law requires an organization
authorized to conduct remote caller bingo games to provide at least
30 days' advance written notice of its intent to conduct a remote
caller bingo game.  
   This bill additionally would permit remote caller bingo games to
be conducted in a city, county, or city and county pursuant to an
ordinance that allows bingo games to be conducted, if the governing
body of the city, county, or city and county opts to permit remote
caller bingo pursuant to that ordinance by resolution. The bill would
prohibit an organization from conducting remote caller bingo more
than 2 days per week, but would permit a licensed organization to
hold one additional game, at its election, in each calendar quarter.
The bill would delete the limit on the number of players that may
participate in a remote caller bingo game in a single location, and
would delete the requirement for advance written notice of intent to
conduct a remote caller bingo game. The bill also would make a
technical change to the model ordinance.  
   Existing law requires the California Gambling Control Commission
to regulate remote caller bingo, including licensure and operation.
Among other things, any person who conducts a remote caller bingo
game and any person who manufactures or otherwise provides equipment
for use in the playing of a remote caller bingo game are required to
be licensed. Existing law also requires the commission to approve all
equipment used for remote caller bingo in advance, to monitor
operation of the transmission and other equipment used for remote
caller bingo, and to monitor the game.  
   This bill, instead, would require an organization licensed by a
city, county, or city and county to conduct remote caller bingo games
to register with the Department of Justice by transmitting a copy of
the bingo license to the department. The bill would authorize the
department to charge an annual registration fee of up to $100 per
year, to be deposited into the Gambling Control Fund, to cover the
actual costs of the department to administer and enforce these
provisions. The bill would make other technical and conforming
changes relating to the duties of the Department of Justice. The bill
would delete the licensure requirement for a person who conducts a
remote caller bingo game. The bill would continue to require the
commission to approve all equipment used for remote caller bingo in
advance, but would require the Department of Justice to monitor
operation of the transmission and other equipment used for remote
caller bingo and to monitor the game. The bill would authorize the
department or the commission to audit the books and records of a
licensed organization or vendor of equipment used in a remote caller
bingo game at any time.  
   This bill would make additional changes relating to the
requirements for cosponsoring remote caller bingo games, and would
simplify other procedures and requirements applicable to the conduct
of remote caller bingo games.  
   Existing law requires the California Gambling Control Commission
to submit a report to the Legislature, on or before January 1, 2012,
on the fundraising effectiveness and regulation of remote caller
bingo.  
   This bill would delete that reporting requirement.  
   Existing law generally prohibits the sale or consumption of
alcoholic beverages at a public schoolhouse or any grounds thereof.
Existing law provides that this prohibition does not apply if the
alcoholic beverages are acquired, possessed, or used during an event
at a community center owned by a community services district and the
event is not held at a time when students are attending a public
school-sponsored activity at the center.  
   This bill would expand the exception to also provide that the
prohibition does not apply if the alcoholic beverages are acquired,
possessed, or used during an event at a community center owned by a
city and the event is not held at a time when students are attending
a public school-sponsored activity at the center.
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

   SECTION 1.    Section 326.3 of the   Penal
Code   is amended to read: 
   326.3.  (a) The Legislature finds and declares all of the
following:
   (1) Nonprofit organizations provide important and essential
educational, philanthropic, and social services to the people of the
State of California.
   (2) One of the great strengths of California is a vibrant
nonprofit sector.
   (3) Nonprofit and philanthropic organizations touch the lives of
every Californian through service and employment.
   (4) Many of these services would not be available if nonprofit
organizations did not provide them.
   (5) There is a need to provide methods of fundraising to nonprofit
organizations to enable them to provide these essential services.
   (6) Historically, many nonprofit organizations have used
charitable bingo as one of their key fundraising strategies to
promote the mission of the charity.
   (7) Legislation is needed to provide greater revenues for
nonprofit organizations to enable them to fulfill their charitable
purposes, and especially to meet their increasing social service
obligations.
   (8) Legislation is also needed to clarify that existing law
requires that all charitable bingo must be played using a tangible
card and that the only permissible electronic devices to be used by
charitable bingo players are card-minding devices.
   (b) Neither the prohibition on gambling in this chapter nor in
Chapter 10 (commencing with Section 330) applies to any remote caller
bingo game that is played or conducted in a city, county, or city
and county pursuant to an ordinance enacted under Section 19 of
Article IV of the California Constitution, if the ordinance allows a
remote caller bingo game to be played or conducted only in accordance
with the requirements of this section, including the following
requirements:
   (1) The game may be conducted only by the following organizations:

   (A) An organization that is exempted from the payment of the taxes
imposed under the Corporation Tax Law by Section 23701a, 23701b,
23701d, 23701e, 23701f, 23701g, 23701k, 23701w, or 23701  l 
of the Revenue and Taxation Code.
   (B) A mobilehome park association.
   (C) A senior citizens organization.
   (D) Charitable organizations affiliated with a school district.
   (2) The organization conducting the game shall have been
incorporated or in existence for three years or more.
   (3) The organization conducting the game shall be licensed
pursuant to subdivision (l) of Section 326.5.
   (4) The receipts of the game shall be used only for charitable
purposes. The organization conducting the game shall determine the
disbursement of the net receipts of the game.
   (5) The operation of bingo may not be the primary purpose for
which the organization is organized.
   (c) (1) A city, county, or city and county may adopt an ordinance
in substantially the following form to authorize remote caller bingo
in accordance with the requirements of subdivision (b):


   Sec. _.01. Legislative Authorization.
   This chapter is adopted pursuant to Section 19 of Article IV of
the California Constitution, as implemented by Sections 326.3 and
326.4 of the Penal Code.
   Sec. _.02. Remote Caller Bingo Authorized.
   Remote Caller Bingo may be lawfully played in the City, County, or
City and County] pursuant to the provisions of Sections 326.3 and
326.4 of the Penal Code, and this chapter, and not otherwise.
   Sec. _.03. Qualified Applicants: Applicants for Licensure.
   (a) The following organizations are qualified to apply to the
License Official for a license to operate a bingo game if the
receipts of those games are used only for charitable purposes:
   (1) An organization exempt from the payment of the taxes imposed
under the Corporation Tax Law by Section 23701a, 23701b, 23701d,
23701e, 23701f, 23701g, 23701k, 23701  l  , or 23701w of the
Revenue and Taxation Code.
   (2) A mobile home park association of a mobile home park that is
situated in the City, County, or City and County].
   (3) Senior citizen organizations.
   (4) Charitable organizations affiliated with a school district.
   (b) The application shall be in a form prescribed by the License
Official and shall be accompanied by a nonrefundable filing fee in an
amount determined by resolution of the Governing Body of the City,
County, or City and County] from time to time. The following
documentation shall be attached to the application, as applicable:

   (1) A certificate issued by the Franchise Tax Board certifying
that the applicant is exempt from the payment of the taxes imposed
under the Corporation Tax Law pursuant to Section 23701a, 23701b,
23701d, 23701e, 23701f, 23701g, 23701k, 23701  l  ,
or 23701w of the Revenue and Taxation Code. In lieu of a certificate
issued by the Franchise Tax Board, the License Official may refer to
the Franchise Tax Board's Internet Web site to verify that the
applicant is exempt from the payment of the taxes imposed under the
Corporation Tax Law. 
   (1) Appropriate documentation of the organization's qualification
pursuant to subdivision (a). 
   (2) Other evidence as the License Official determines is necessary
to verify that the applicant is a duly organized mobile home park
association of a mobile home park situated in the City, County, or
City and County].
   Sec. _.04. License Application: Verification.
   The license shall not be issued until the License Official has
verified the facts stated in the application and determined that the
applicant is qualified.
   Sec. _.05. Annual Licenses.
   A license issued pursuant to this chapter shall be valid until the
end of the calendar year, at which time the license shall expire. A
new license shall only be obtained upon filing a new application and
payment of the license fee. The fact that a license has been issued
to an applicant creates no vested right on the part of the licensee
to continue to offer bingo for play. The Governing Body of the City,
County, or City and County] expressly reserves the right to amend or
repeal this chapter at any time by resolution. If this chapter is
repealed, all licenses issued pursuant to this chapter shall cease to
be effective for any purpose on the effective date of the repealing
resolution.
   Sec. _.06. Conditions of Licensure.
   (a) Any license issued pursuant to this chapter shall be subject
to the conditions contained in Sections 326.3 and 326.4 of the Penal
Code, and each licensee shall comply with the requirements of those
provisions.
   (b) Each license issued pursuant to this chapter shall be subject
to the following additional conditions:
   (1) Bingo games shall not be conducted by any licensee on more
than two days during any week, except that a licensee may hold one
additional game, at its election, in each calendar quarter.
   (2) The licensed organization is responsible for ensuring that the
conditions of this chapter and Sections 326.3 and 326.4 of the Penal
Code are complied with by the organization and its officers and
members. A violation of any one or more of those conditions or
provisions shall constitute cause for the revocation of the
organization's license. At the request of the organization, the
Governing Body of the City, County, or City and County] shall hold a
public hearing before revoking any license issued pursuant to this
chapter.


   (2) Nothing in this section shall require a city, county, or city
and county to use this model ordinance in order to authorize remote
caller bingo. 
   (3) A remote caller bingo game may be played or conducted in a
city, county, or city and county pursuant to an ordinance enacted
under Section 19 of Article IV of the California Constitution, if the
ordinance allows games to be conducted only in accordance with the
requirements of Section 326.5, and if the governing body of the city,
county, or city and county opts to permit remote caller bingo
pursuant to that ordinance by resolution. 
   (d) It is a misdemeanor for any person to receive or pay a profit,
wage, or salary from any remote caller bingo game, provided that
administrative, managerial, technical, financial, and security
personnel employed by the organization conducting the bingo game may
be paid reasonable fees for services rendered from the revenues of
bingo games, as provided in subdivision (m), except that fees paid
under those agreements shall not be determined as a percentage of
receipts or other revenues from, or be dependant on the outcome of,
the game.
   (e) A violation of subdivision (d) shall be punishable by a fine
not to exceed ten thousand dollars ($10,000), which fine shall be
deposited in the general fund of the city, county, or city and county
that enacted the ordinance authorizing the remote caller bingo game.
A violation of any provision of this section, other than subdivision
(d), is a misdemeanor.
   (f) The city, county, or city and county that enacted the
ordinance authorizing the remote caller bingo game, or the Attorney
General, may bring an action to enjoin a violation of this section.
   (g) No minors shall be allowed to participate in any remote caller
bingo game.
   (h) A remote caller bingo game shall not include any site that is
not located within this state.
   (i) An organization authorized to conduct a remote caller bingo
game pursuant to subdivision (b) shall conduct the game only on
property that is owned or leased by the organization, or the use of
which is donated to the organization. Nothing in this subdivision
shall be construed to require that the property that is owned or
leased by, or the use of which is donated to, the organization be
used or leased exclusively by, or donated exclusively to, that
organization.
   (j) (1) All remote caller bingo games shall be open to the public,
not just to the members of the authorized organization. 
   (2) No more than 750 players may participate in a remote caller
bingo game in a single location.  
   (3) 
    (2)  If the Governor of California or the President of
the United States declares a state of emergency in response to a
natural disaster or other public catastrophe occurring in California,
an organization authorized to conduct remote caller bingo games may,
while that declaration is in effect, conduct a remote caller bingo
game pursuant to this section  with more than 750
participants in a single venue  if the net proceeds of the
game, after deduction of prizes and overhead expenses, are donated to
or expended exclusively for the relief of the victims of the
disaster or catastrophe, and the organization gives the 
California Gambling Control Commission   department
 at least 10 days' written notice of the intent to conduct that
game. 
   (4) An organization authorized to conduct remote caller bingo
games shall provide the commission with at least 30 days' advance
written notice of its intent to conduct a remote caller bingo game.
That notice shall include all of the following:  
   (A) The legal name of the organization and the address of record
of the agent upon whom legal notice may be served.  

   (B) The locations of the caller and remote players, whether the
property is owned by the organization or donated, and if donated, by
whom.  
   (C) The name of the licensed caller and site manager. 

   (D) The names of administrative, managerial, technical, financial,
and security personnel employed.  
   (E) The name of the vendor and any person or entity maintaining
the equipment used to operate and transmit the game. 

   (F) The name of the person designated as having a fiduciary
responsibility for the game pursuant to paragraph (2) of subdivision
(k).  
   (G) The license numbers of all persons specified in subparagraphs
(A) to (F), inclusive, who are required to be licensed. 

   (H) A copy of the local ordinance for any city, county, or city
and county in which the game will be played. The commission shall
post the ordinance on its Internet Web site.  
   (3) An organization licensed to conduct remote caller bingo games
by the local licensing entity shall register with the department by
transmitting a copy of the bingo license to the department. The
department may require a licensed organization to pay an annual
registration fee of up to one hundred dollars ($100) per year to
cover the actual costs of the department to administer and enforce
this section. The annual registration fees shall be deposited by the
department into the Gambling Control Fund.  
   (4) The department shall have concurrent jurisdiction with local
law enforcement agencies to enforce this section. 
   (k) (1) A remote caller bingo game shall be operated and staffed
only by members of the authorized organization that organized it.
Those members shall not receive a profit, wage, or salary from any
remote caller bingo game. Only the organization authorized to conduct
a remote caller bingo game shall operate that game, or participate
in the promotion, supervision, or any other phase of a remote caller
bingo game. Subject to  the provisions of 
subdivision (m), this subdivision shall not preclude the employment
of administrative, managerial, technical, financial, or security
personnel who are not members of the authorized organization at a
location participating in the remote caller bingo game by the
organization conducting the game. Notwithstanding any other 
provisions of  law, exclusive or other agreements between
the authorized organization and other entities or persons to provide
services in the administration, management, or conduct of the game
shall not be considered a violation of the prohibition against
holding a legally cognizable financial interest in the conduct of the
remote caller bingo game by persons or entities other than the
charitable organization, or other entity authorized to conduct the
remote caller bingo games, provided that those persons or entities
obtain the gambling licenses, the key employee licenses, or the work
permits required by, and otherwise comply with, Chapter 5 (commencing
with Section 19800) of Division 8 of the Business and Professions
Code. Fees to be paid under  any such   those
 agreements shall be reasonable and shall not be determined as a
percentage of receipts or other revenues from, or be dependent on
the outcome of, the game.
   (2) An organization that conducts a remote caller bingo game shall
designate a person as having fiduciary responsibility for the game.
   (l) No individual, corporation, partnership, or other legal
entity, except the organization authorized to conduct or participate
in a remote caller bingo game, shall hold a legally cognizable
financial interest in the conduct of  such a  
that  game.
   (m) An organization authorized to conduct a remote caller bingo
game pursuant to this section shall not have overhead costs exceeding
20 percent of gross sales, except that the limitations of this
section shall not apply to one-time, nonrecurring capital
acquisitions. For purposes of this subdivision, "overhead costs"
includes, but is not limited to, amounts paid for rent and equipment
leasing and the reasonable fees authorized to be paid to
administrative, managerial, technical, financial, and security
personnel employed by the organization pursuant to subdivision (d).
For the purpose of keeping its overhead costs below 20 percent of
gross sales, an authorized organization may elect to deduct all or a
portion of the fees paid to financial institutions for the use and
processing of credit card sales from the amount of gross revenues
awarded for prizes. In that case, the redirected fees for the use and
processing of credit card sales shall not be included in "overhead
costs" as defined in the California Remote Caller Bingo Act.
Additionally, fees paid to financial institutions for the use and
processing of credit card sales shall not be deducted from the
proceeds retained by the charitable organization.
   (n) No person shall be allowed to participate in a remote caller
bingo game unless the person is physically present at the time and
place where the remote caller bingo game is being conducted. A person
shall be deemed to be physically present at the place where the
remote caller bingo game is being conducted if he or she is present
at any of the locations participating in the remote caller bingo game
in accordance with this section.
   (o) (1) An organization shall not cosponsor a remote caller bingo
game with one or more other organizations unless  one of the
following is true: 
    (A)     All 
 all  of the cosponsors are affiliated under the master
charter or articles and bylaws of a single organization  involved
in the same type of activity  . 
   (B) All of the cosponsors are affiliated through an organization
described in paragraph (1) of subdivision (b), and have the same
Internal Revenue Service activity code. 
   (2) Notwithstanding paragraph (1), a maximum of 10 unaffiliated
organizations described in paragraph (1) of subdivision (b) may enter
into an agreement to cosponsor a remote caller game, 
provided   but  the game shall have not more than
10 locations.
   (3) An organization shall not conduct remote caller bingo more
than two days per week  , except that a licensed organization may
hold one additional game   , at its election, in each
calendar quarter  . 
   (4) Before sponsoring or operating any game authorized under
paragraph (1) or (2), each of the cosponsoring organizations shall
have entered into a written agreement, a copy of which shall be
provided to the commission, setting forth how the expenses and
proceeds of the game are to be allocated among the participating
organizations, the bank accounts into which all receipts are to be
deposited and from which all prizes are to be paid, and how game
records are to be maintained and subjected to annual audit. 

   (p) The value of prizes awarded during the conduct of any remote
caller bingo game shall not exceed 37 percent of the gross receipts
for that game. When an authorized organization elects to deduct fees
paid for the use and processing of credit card sales from the amount
of gross revenues for that game awarded for prizes, the maximum
amount of gross revenues that may be awarded for prizes shall not
exceed 37 percent of the gross receipts for that game, less the
amount of redirected fees paid for the use and processing of credit
card sales. Every remote caller bingo game shall be played until a
winner is declared. Progressive prizes are prohibited. The declared
winner of a remote caller bingo game shall provide his or her
identifying information and a mailing address to  the onsite
manager of the remote caller bingo game   a
representative of the organization  . Prizes shall be paid only
by check; no cash prizes shall be paid. The organization conducting
the remote caller bingo game may issue a check to the winner at the
time of the game, or may send a check to the declared winner by
United States Postal Service  certified mail, return receipt
requested  . All prize money exceeding state and federal
exemption limits on prize money shall be subject to income tax
reporting and withholding requirements under applicable state and
federal laws and regulations and those reports and withholding shall
be forwarded, within 10 business days, to the appropriate state or
federal agency on behalf of the winner. A report shall accompany the
amount withheld identifying the person on whose behalf the money is
being sent. Any game interrupted by a transmission failure,
electrical outage, or act of God shall be considered void in the
location that was affected. A refund for a canceled game or games
shall be provided to the purchasers.
   (q) (1) The  California Gambling Control Commission shall
regulate remote caller bingo, including, but not limited to,
licensure and operation. The commission shall establish reasonable
criteria regulating, and   department  shall
require the licensure of  , the following:  

   (A) Any person who conducts a remote caller bingo game pursuant to
this section, including, but not limited to, an employee, a person
having fiduciary responsibility for a remote caller bingo game, a
site manager, and a bingo caller. 
    (B)     Any 
 any  person who directly or indirectly manufactures,
distributes, supplies, vends, leases, or otherwise provides supplies,
devices, services, or other equipment designed for use in the
playing of a remote caller bingo game by any nonprofit organization.

   (C) 
    (2)  Beginning January 31, 2009, or a later date as may
be established by the  commission   department
 , all persons described in  subparagraph (A) or (B)
  paragraph (1)  may submit to the 
commission   department  a letter of intent to
submit an application for licensure. The letter shall clearly
identify the principal applicant, all categories under which the
application will be filed, and the names of all those particular
individuals who are applying. Each charitable organization shall
provide an estimate of the frequency with which it plans to conduct
remote caller bingo operations, including the number of locations.
The letter of intent may be withdrawn or updated at any time.

   (2) 
    (3)  (A) The  Department of Justice 
 department and the local licensing entity  shall conduct
background investigations and  conduct  field
enforcement as it relates to remote caller bingo consistent with the
Gambling Control Act (Chapter 5 (commencing with Section 19800) of
Division 8 of the Business and Professions Code)  ,  and as
specified in regulations promulgated by the  commission
  department  .
   (B) Fees to cover background investigation costs shall be paid and
accounted for in accordance with Section 19867 of the Business and
Professions Code. 
   (3) 
    (4)  (A) Every application for a license or approval
shall be accompanied by a nonrefundable fee, the amount of which
shall be adopted by the  commission   department
 by regulation.
   (B) Fees and revenue collected pursuant to this paragraph shall be
deposited in the California Bingo Fund, which is hereby created in
the State Treasury. The funds deposited in the California Bingo Fund
shall be available, upon appropriation by the Legislature, for
expenditure by the commission and the department exclusively for the
support of the commission and department in carrying out their duties
and responsibilities under this section and Section 326.5.
   (C) A loan is hereby authorized from the Gambling Control Fund to
the California Bingo Fund on or after January 1, 2009, in an amount
of up to five hundred thousand dollars ($500,000) to fund operating,
personnel, and other startup costs incurred by the commission
relating to this act. Funds from the California Bingo Fund shall be
available to the commission upon appropriation by the Legislature in
the annual Budget Act. The loan shall be subject to all of the
following conditions:
   (i) The loan shall be repaid to the Gambling Control Fund as soon
as there is sufficient money in the California Bingo Fund to repay
the amount loaned, but no later than five years after the date of the
loan.
   (ii) Interest on the loan shall be paid from the California Bingo
Fund at the rate accruing to moneys in the Pooled Money Investment
Account.
   (iii) The terms and conditions of the loan are approved, prior to
the transfer of funds, by the Department of Finance pursuant to
appropriate fiscal standards.
   The commission may assess and collect reasonable fees and deposits
as necessary to defray the costs of regulation and oversight.

   (r) The administrative, managerial, technical, financial, and
security personnel employed by an organization that conducts remote
caller bingo games shall apply for, obtain, and thereafter maintain
valid work permits, as defined in Section 19805 of the Business and
Professions Code.  
   (s) 
    (r)  An organization that conducts remote caller bingo
games shall retain records in connection with the remote caller bingo
game for five years. 
   (t) 
    (s)  (1) All equipment used for remote caller bingo
shall be approved in advance by the  California Gambling
Control Commission   commission  pursuant to
regulations adopted pursuant to subdivision (r) of Section 19841 of
the Business and Professions Code.
   (2) The  California Gambling Control Commission 
 department  shall monitor operation of the transmission and
other equipment used for remote caller bingo, and monitor the game.

   (u) 
    (t)  (1) As used in this section, "remote caller bingo
game" means a game of bingo, as defined in subdivision (o) of Section
326.5, in which the numbers or symbols on randomly drawn plastic
balls are announced by a natural person present at the site at which
the live game is conducted, and the organization conducting the bingo
game uses audio and video technology to link any of its in-state
facilities for the purpose of transmitting the remote calling of a
live bingo game from a single location to multiple locations owned,
leased, or rented by that organization, or as described in
subdivision (o) of this section. The audio or video technology used
to link the facilities may include cable, Internet, satellite,
broadband, or telephone technology, or any other means of electronic
transmission that ensures the secure, accurate, and simultaneous
transmission of the announcement of numbers or symbols in the game
from the location at which the game is called by a natural person to
the remote location or locations at which players may participate in
the game. The drawing of each ball bearing a number or symbol by the
natural person calling the game shall be visible to all players as
the ball is drawn, including through a simultaneous live video feed
at remote locations at which players may participate in the game.

   (2) The caller in the live game must be licensed by the California
Gambling Control Commission. A game may be called by a nonlicensed
caller if the drawing of balls and calling of numbers or symbols by
that person is observed and personally supervised by a licensed
caller.  
                                                    (3) 
    (2)  Remote caller bingo games shall be played using
traditional paper or other tangible bingo cards and daubers, and
shall not be played by using electronic devices, except card-minding
devices, as described in paragraph (1) of subdivision (p) of Section
326.5. 
   (4) Prior to conducting a remote caller bingo game, the
organization that conducts remote caller bingo shall submit to the
commission the controls, methodology, and standards of game play,
which shall include, but not be limited to, the equipment used to
select bingo numbers and create or originate cards, control or
maintenance, distribution to participating locations, and
distribution to players. Those controls, methodologies, and standards
shall be subject to prior approval by the commission, provided that
the controls shall be deemed approved by the commission after 90 days
from the date of submission unless disapproved.  
   (v) 
    (u)  A location shall not be eligible to participate in
a remote caller bingo game if bingo games are conducted at that
location in violation of Section 326.5 or any regulation adopted by
the commission pursuant to Section 19841 of the Business and
Professions Code, including, but not limited to, a location at which
unlawful electronic devices are used. 
   (w) (1) The vendor of the equipment used in a remote caller bingo
game shall have its books and records audited at least annually by an
independent California certified public accountant and shall submit
the results of that audit to the California Gambling Control
Commission within 120 days after the close of the vendor's fiscal
year. In addition, the California Gambling Control Commission may
audit the books and records of the vendor at any time. 

   (2) An authorized organization that conducts remote caller bingo
games shall provide copies of the records pertaining to those games
to the California Gambling Control Commission within 30 days after
the end of each calendar quarter. In addition, those records shall be
audited by an independent California certified public accountant at
least annually and copies of the audit reports shall be provided to
the California Gambling Control Commission within 120 days after the
close of the organization's fiscal year. The audit report shall
account for the annual amount of fees paid to financial institutions
for the use and processing of credit card sales by the authorized
organization and the amount of fees for the use and processing of
credit card sales redirected from "overhead costs" and deducted from
the amount of gross revenues awarded for prizes.  
   (3) The costs of the licensing and audits required by this section
shall be borne by the person or entity required to be licensed or
audited. The audit shall enumerate the receipts for remote caller
bingo, the prizes disbursed, the overhead costs, and the amount
retained by the nonprofit organization. The commission may audit the
books and records of an organization that conducts remote caller
bingo games at any time.  
   (4) If, during an audit, the commission identifies practices in
violation of this section, the license for the audited entity may be
suspended pending review and hearing before the commission for a
final determination.  
   (5) No audit required to be conducted by the commission shall
commence before January 1, 2010.  
   (v) The department or the commission may audit the books and
records of a licensed organization or vendor of equipment used in a
remote caller bingo game at any time.  
   (x) 
    (w)  (1) The provisions of this section are severable.
If any provision of this section or its application is held invalid,
that invalidity shall not affect other provisions or applications
that can be given effect without the invalid provision or
application.
   (2) Notwithstanding paragraph (1), if paragraph (1) or 
(3)   (2)  of subdivision  (u) 
 (t)  , or the application of either of those provisions, is
held invalid, this entire section shall be invalid. 
   (y) The commission shall submit a report to the Legislature, on or
before January 1, 2012, on the fundraising effectiveness and
regulation of remote caller bingo, and other matters that are
relevant to the public interest regarding remote caller bingo.
 
   (z) 
    (x)  The following definitions apply for purposes of
this section:
   (1) "Commission" means the California Gambling Control Commission.

   (2) "Department" means the Department of Justice.  
   (3)  "Local licensing entity" means the city, county, or city and
county.  
   (4) "Organization" means the principal organization that the
cosponsors are affiliated with. All cosponsors shall be considered
part of the organization with one person serving as the fiduciary for
the organization and all affiliated cosponsors.  
   (2) 
    (5)  "Person" includes a natural person, corporation,
limited liability company, partnership, trust, joint venture,
association, or any other business organization. 
  SECTION 1.    Section 25608 of the Business and
Professions Code is amended to read:
   25608.  (a) Every person who possesses, consumes, sells, gives, or
delivers to any other person, any alcoholic beverage in or on any
public schoolhouse or any of the grounds of the schoolhouse, is
guilty of a misdemeanor. This section does not, however, make it
unlawful for any person to acquire, possess, or use any alcoholic
beverage in or on any public schoolhouse, or on any grounds of the
schoolhouse, if any of the following applies:
   (1) The alcoholic beverage possessed, consumed, or sold, pursuant
to a license obtained under this division, is wine that is produced
by a bonded winery owned or operated as part of an instructional
program in viticulture and enology.
   (2) The alcoholic beverage is acquired, possessed, or used in
connection with a course of instruction given at the school and the
person has been authorized to acquire, possess, or use it by the
governing body or other administrative head of the school.
   (3) The public schoolhouse is surplus school property and the
grounds of the schoolhouse are leased to a lessee that is a general
law city with a population of less than 50,000, or the public
schoolhouse is surplus school property and the grounds of the
schoolhouse are located in an unincorporated area and are leased to a
lessee that is a civic organization, and the property is to be used
for community center purposes and no public school education is to be
conducted on the property by either the lessor or the lessee and the
property is not being used by persons under the age of 21 years for
recreational purposes at any time during which alcoholic beverages
are being sold or consumed on the premises.
   (4) The alcoholic beverages are acquired, possessed, or used
during events at a college-owned or college-operated veterans stadium
with a capacity of over 12,000 people, located in a county with a
population of over 6,000,000 people. As used in this paragraph,
"events" mean football games sponsored by a college, other than a
public community college, or other events sponsored by noncollege
groups.
   (5) The alcoholic beverages are acquired, possessed, or used
during an event not sponsored by any college at a performing arts
facility built on property owned by a community college district and
leased to a nonprofit organization that is a public benefit
corporation formed under Part 2 (commencing with Section 5110) of
Division 2 of Title 1 of the Corporations Code. As used in this
paragraph, "performing arts facility" means an auditorium with more
than 300 permanent seats.
   (6) The alcoholic beverage is wine for sacramental or other
religious purposes and is used only during authorized religious
services held on or before January 1, 1995.
   (7) The alcoholic beverages are acquired, possessed, or used
during an event at a community center owned by a community services
district or a city, and the event is not held at a time when students
are attending a public school-sponsored activity at the center.
   (8) The alcoholic beverage is wine that is acquired, possessed, or
used during an event sponsored by a community college district or an
organization operated for the benefit of the community college
district where the college district maintains both an instructional
program in viticulture on no less than five acres of land owned by
the district and an instructional program in enology, which includes
sales and marketing.
   (9) The alcoholic beverage is acquired, possessed, or used at a
professional minor league baseball game conducted at the stadium of a
community college located in a county with a population of less than
250,000 inhabitants, and the baseball game is conducted pursuant to
a contract between the community college district and a professional
sports organization.
   (10) The alcoholic beverages are acquired, possessed, or used
during events at a college-owned or college-operated stadium or other
facility. As used in this paragraph, "events" means fundraisers held
to benefit a nonprofit corporation that has obtained a license
pursuant to this division for the event. "Events" does not include
football games or other athletic contests sponsored by any college or
public community college. This paragraph shall not apply to any
public education facility in which any grade from kindergarten to
grade 12, inclusive, is schooled.
   (11) The alcoholic beverages are possessed, consumed, or sold,
pursuant to a license, permit, or authorization obtained under this
division, for an event held at an overnight retreat facility owned
and operated by a county office of education or a school district at
times when pupils are not on the grounds.
   (12) The grounds of the public schoolhouse on which the alcoholic
beverage is acquired, possessed, used, or consumed is property that
has been developed and is used for residential facilities or housing
that is offered for rent, lease, or sale exclusively to faculty or
staff of a public school or community college.
   (13) The grounds of a public schoolhouse on which the alcoholic
beverage is acquired, possessed, used, or consumed is property of a
community college that is leased, licensed, or otherwise provided for
use as a water conservation demonstration garden and community
passive recreation resource by a joint powers agency comprised of
public agencies, including the community college, and the event at
which the alcoholic beverage is acquired, possessed, used, or
consumed is conducted pursuant to a written policy adopted by the
governing body of the joint powers agency and no public funds are
used for the purchase or provision of the alcoholic beverage.
   (14) The alcoholic beverage is beer or wine acquired, possessed,
used, sold, or consumed only in connection with a course of
instruction, sponsored dinner, or meal demonstration given as part of
a culinary arts program at a campus of a California community
college and the person has been authorized to acquire, possess, use,
sell, or consume the beer or wine by the governing body or other
administrative head of the school.
   (15) The alcoholic beverages are possessed, consumed, or sold,
pursuant to a license or permit obtained under this division for
special events held at the facilities of a public community college,
located in a county of the first class, a county of the fourth class,
or a county of the tenth class, during the special event. As used in
this paragraph, "special event" means festivals, shows, private
parties, concerts, theatrical productions, and other events held on
the premises of the public community college, pursuant to a license
or permit, and for which the principal attendees are members of the
general public or invited guests and not students of the public
community college.
   (16) The alcoholic beverages are acquired, possessed, or used
during an event at a community college-owned facility in which any
grade from kindergarten to grade 12, inclusive, is schooled, if the
event is held at a time when students in any grades from kindergarten
to grade 12, inclusive, are not present at the facility. As used in
this paragraph, "events" include fundraisers held to benefit a
nonprofit corporation that has obtained a license pursuant to this
division for the event.
   (b) Any person convicted of a violation of this section shall, in
addition to the penalty imposed for the misdemeanor, be barred from
having or receiving any privilege of the use of public school
property which is accorded by Article 2 (commencing with Section
82537) of Chapter 8 of Part 49 of Division 7 of Title 3 the Education
Code.